The country of origin of a condensate pump

N316993 February 12, 2021 CLA-2-84:OT:RR:NC:N1:102 CATEGORY: Origin Larry T. Ordet Sandler, Travis & Rosenberg, P.A. 5835 Blue Lagoon Drive, Suite 200 Miami, Florida 33126 RE: The country of origin of a condensate pump Dear Mr. Ordet: In your letter dated January 15, 2021 you requested a country of origin ruling on behalf of your client, Beckett Corporation. Descriptive information was provided with your request. The product in question is referred to as Beckett’s CB151UL condensate pump. The pump is used to pump the condensate out from a Heating, Ventilation, and Air Conditioning unit, refrigeration units, a condensing boiler furnace, and a steam system. The pump consists primarily of a tank with rubber bumpers, a motor that powers a fan and the impeller, an impeller attached to a shaft, a housing with a fan and top cover, a tank, and main and safety floats. In regards to the country of origin, it is explained that the motor is manufactured in Vietnam, and the remaining components are produced in China. The final assembly occurs in China. The final assembly of the pump occurs in China, and begins with the motor being attached to the lid. The fan with the housing and the impeller are then pressed onto the motor shaft. The volute, the main and safety floats, the safety switch and main switch with its holder are placed under the lid. The discharge check valve, spring, and washer are attached to the lid. Wiring is connected as required. The tank and lid are then attached to each other, and afterwards, the outer cover is installed. Each finished pump is tested, labeled, and packaged. The “country of origin” is defined in 19 CFR 134.1(b), in pertinent part, as “the country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the 'country of origin' within the meaning of this part.” For tariff purposes, the courts have held that a substantial transformation occurs when an article emerges from a process with a new name, character or use different from that possessed by the article prior to processing. United States v. Gibson-Thomsen Co., Inc., 27 CCPA 267, C.A.D. 98 (1940); National Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff’d, 989 F. 2d 1201 (Fed. Cir. 1993); Anheuser Busch Brewing Association v. The United States, 207 U.S. 556 (1908) and Uniroyal Inc. v. United States, 542 F. Supp. 1026 (1982). The test for determining whether a substantial transformation will occur is whether an article emerges from a process with a new name, character and use, different from that possessed by the article prior to processing. See Texas Instruments Inc. v. United States, 69 C.C.P.A. 151 (1982). This determination is based on the totality of the evidence. See National Hand Tool Corp. v. United States, 16 C.I.T. 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993). Further, in Energizer Battery, Inc. v. United States, 190 F. Supp. 3d 1308 (2016), the Court of International Trade (“CIT”) interpreted the meaning of “substantial transformation” as used in the Trade Agreements Act of 1979 (“TAA”) for purposes of government procurement. In Energizer, the court reviewed the “name, character and use” test in determining whether a substantial transformation had occurred in determining the origin of a flashlight, and reviewed various court decisions involving substantial transformation determinations. The court noted, citing Uniroyal, Inc. v. United States, 3 C.I.T. 220, 226, 542 F. Supp. 1026, 1031, aff’d, 702 F.2d 1022 (Fed. Cir. 1983), that when “the post-importation processing consists of assembly, courts have been reluctant to find a change in character, particularly when the imported articles do not undergo a physical change.” Energizer at 1318. In addition, the court noted, “When the end-use was pre-determined at the time of importation, courts have generally not found a change in use.” Furthermore, courts have considered the nature of the assembly, i.e., whether it is a simple assembly or more complex, such that individual parts lose their separate identities and become integral parts of a new article. Here, the Vietnamese motor is not “substantially transformed” by the Chinese assembly operations. The assembly processes that occur in China involve processes such as connecting and press fitting components to each other. Headquarters ruling H303864, December 26, 2019, discusses the assembly of a pump assembly and explains that processes, such as press fitting components to each other, is simple assembly. Therefore, it is our view that the motor, which imparts the very essence of the finished condensate pump, is not subject to any further operations other than simple assembly. The motor is not transformed in China into a new and different article of commerce with a name, character, and use distinct from the article exported. As such, the country of origin of the Beckett’s CB151UL condensate pump is Vietnam at the time of importation. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request.  This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1).  This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect.  In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2.  You should also be aware that the material facts described in the foregoing ruling may be subject to periodic verification by CBP. A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Sandra Martinez at Sandra.martinez@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division